Prices of oil jumped today to the maximum since late 2014 in view of U.S. crude inventories fall and OPEC’s continuing efforts to support prices by limiting supply.
Brent futures moved up to $74.02 per barrel, unseen since November, 2014, and even attained $73.93 for a barrel, 45 cents growth compared to the previous settlement.
U.S. WTI futures ran up to $68.85 per barrel, 38 cents uptick. A little earlier WTI reached the level of $68.95, the highest reading since December, 2014.
The upward movement is the result of the recent stock data, as well as risk premiums from the latest Middle East tensions, though the risk premiums are there for a short time and prices are probably going to return back to normal with the abatement of tensions, Barnabas Gan of OCBC said.
OPEC and several other oil producers united in their decision to cut production are going to gather tomorrow in Jeddah, Saudi Arabia. Subsequently OPEC will hold a meeting on June 22 in order to analyze its oil production strategy.
Yesterday’s report by Reuters said that Saudi Arabia would be eager to make oil prices go up to $80-$100 for a barrel, which was interpreted as unwillingness of the country’s government to change the ongoing curbing of supply.